The decentralized exchange (dex) Dydx announced the organization has raised $65 million in a Series C funding round led by Paradigm. The Dydx announcement notes that the additional capital will be leveraged to “significantly improve liquidity” on the dex platform “through the volatility of the cryptocurrency markets.”
Defi Exchange Dydx Raises $65 million from Strategic Investors
On Tuesday, the Ethereum-based decentralized finance (defi) exchange Dydx revealed the project has raised $65 million in a Series C funding round. The round was led by Paradigm but funding also stemmed from a16z, Three Arrows Capital, Polychain Capital, and Wintermute. Liquidity providers and crypto VCs like Hashkey, Electric Capital, Delphi Digital, Sixtant, Menai Financial Group, MGNR, and Kronos Research also participated.
In the announcement, Dydx also discussed the dex partner Starkware and how the two launched a Layer 2 protocol back in February for cross-margined perpetuals. This was due to a combination of the Starkex scalability engine and Dydx’s perpetual smart contracts. Dydx said that in five months, the dex obtained $40 million in Total Value Locked (TVL) from more than 13K unique addresses. The project launched 15 markets and the announcement says more will be “coming soon.”
Top Ten Dex Platform Holds $188 Million TVL
Today’s data shows Dydx is one of the top ten dex platforms according to Dune Analytics statistics. On Tuesday, the dex held the ninth position with $49,537,567 in weekly volume and $6.5 million during the last 24 hours. On Monday, Dydx had around $9 million worth of defi swaps.
It holds less than 2% of the market share of $16 billion in global dex swaps as Uniswap commands 63% and Sushiswap captures 11.5%. Besides significantly improve liquidity, Dydx says the project aims to utilize the additional capital to:
- Decentralize the protocol
- Rapidly add new assets and features to the perpetuals contracts